GLOBEX 2: Enter the Google, Exit the BitCoin
Right now the BitCoin group is running into what we call "floor trader fear". The voting members are chafing at the idea of scaling their supply by adding servers and/ or server power. This would disrupt their own little empires, not unlike the trading floor fearing Globex back in the day. And so many exchanges held out and protected the floor. And in the end they died. PHLX, AMEX, COMEX, PCOAST, CSCE, all gone or absorbed because they were late to adapt new technology and protect their liquidity pools.
If Bitcoin removes power from its voting members control by demutualizing and uses those proceeds to increase server power they will likely excel. But Google and Amazon are now playing and they are all about unlimited server power. Plus they have the eyeballs already. This is not unlike having the "marketmakers" already trading on a screen at Globex. The "liquidity pool" of buyers and sellers are already on Amazon and Google. Bitcoin does not have that past "early adaptors". Remember Palm?
When, not if, those behemoths are up and running they will immediately have an embedded network of both customers AND service providers at their disposal in the form of search eyeballs (Google) and buyers (Amazon). They will be set up to crush the opposition if they choose to create their own currency.
Imagine Amazon offering Amazon money for Amazon purchases. Now imagine them offering 20% discounts if you use their money. The choices at this point boggle the mind. Tactical choices thought no longer used will come into play again.
Some examples: Freemium, Coupons, Customer Loyalty, Vertical Client Integration (P.O.S.), Travelers checks and more.
To be fair, Google has invested in Bitcoin as well. What smart trader would not hedge himself. But just like Netflix is Amazon's biggest cloud customer, but will eventually put Netflix out of business (after NetFlix kills Hollywood's distribution network); So will Google/ Amazon/ Apple attempt to obviate the need for any currency but their own.
Blockchain is the railroad. Amazon and Google have the oil. Like Rockefeller before, The railroad will be made "exclusive" to their products.
The goal here is to introduce their own currency or be brokers of deals using their "search engine" coupons. The coupons are the gateway to their new currency. Exactly how this goes down we do nto know. This post is one example of how it could go down. The bottom line for the big tech companies is how they can lever their networks more efficently and add scale without increasing fixed cost.
That comes in the form of levering existing networks with new products geared to cement loyalty. What better way to do this than to have your own money ? What will Home Depot do? WE HONOR AMAZON CASH? Meanwhile the plumber, pipes, and sump pump you buy next month will all be through Amazon. And you'll get a discount by using Amazon cash on your Amazon credit card.
Amazon and Google are just a big cash register with all their products at point of sale. Gum, Mints, and People magazine will become Disinfectant, Steam Cleaners, Rugs, and a Local Handy Man. And instread of asking for your loyalty card they will actually take blockchain driven Amazon currency.
Remember ATMs?
After everyone was on them, they stopped being free.